AUD/USD The main highlight last week was the Fed’s Jackson Hole Economic Symposium. The main message to come from the Symposium was from Fed Chair Jerome Powell, who said the Fed will press on with interest rate rises, and will keep interest rate high for an extended period of time if necessary, in order bring
USD and AUD/USD Economic data out of the U.S. this week include the second estimate of U.S. Q2 real GDP. The first estimate of U.S. Q2 GDP fell -0.9% (saar), making it the second consecutive negative quarter of growth (after a -1.6% (saar) in Q1). This placed the U.S. economy in a technical recession, even
AUD/USD The biggest currency event of last week, was the news that U.S. inflation eased in July. Annual CPI inflation eased from 9.1% (YoY) to 8.5% (YoY), with the core measure of inflation remaining at 5.9% (YoY). The currency market reacted by sending the USD lower, giving a lift to all boats, including the AUD,
AUD/USD AUD/USD declined after the RBA raised interest rates 50bpts (as expected) to 1.85% last week. The main reason for this was, the RBA updated their forward guidance to say while they place a “high priority” on the return of inflation to the 2-3% range, they are “not on a pre-set path”. The market interpreted
AUD/USD AUD/USD has lifted over the last week, rising temporarily back above 0.7000 for the first time in some six weeks, driven largely by a softening in the USD. The USD appears to have peaked as U.S. economic growth slows and because there are some early sign’s inflation may have peaked. U.S. economic growth contracted
AUD/USD Australia’s Q2 CPI inflation data is out on Wednesday. Consensus is for a 1.9% (QoQ) rise, and for the annual rate of inflation to lift to 6.2%, from 5.1% in Q1. Australia’s core (trimmed mean) CPI inflation is also expected to rise 1.5% (QoQ) to be 4.7%, up from 3.7% in Q1. The categories
AUD/USD AUD/USD declined to a fresh two-year low of 0.6711 last Monday as the USD strengthened, and EUR fell towards parity (see below). The USD continued to strengthen after a better-than- expected U.S. June non-farm payrolls labour market report on the previous Friday. Monday’s trade gave the Asian and European market an opportunity to react
AUD/USD AUD/USD touched a two-year low of 0.6762 on Thursday last week. Intensifying concerns over slowing global economic growth, and USD strength are the main reasons for the downward pressure on AUD/USD. There is nothing on the horizon to dampen these concerns, and so it is likely that the downward pressure on AUD/USD will continue,
AUD/USD AUD/USD fell to 0.6764, its lowest level in more than two-years, since June 2020. AUD/USD will continue to trade heavy while concerns over a global economic slowdown intensify, and the USD continues to strengthen. Reflecting the dominance of the concerns over slowing global economic growth, global bond yields have declined from their mid-June 2022
AUD/USD AUD/USD avoided edging lower of the course of last week. But showed an unconvincing bounce, closing marginally above the previous week’s close. What is interesting, is it has also been a week when the USD has closed the week lower. AUD has undergone some outright depreciation, reflected by the fact that AUD has moved